(prHWY.com) April 6, 2010 - London, United Kingdom -- Whilst Kidnap and Ransom (K&R) premiums are under stiff competition it should be noted that the buyer gets what they pay for. A Lloyd's underwriter offering such cover has the following exclusion hidden away in the small print:
"This insurance shall not cover losses which would normally be insured under a standard Hull and Machinery, Protection and Indemnity, Freight Demurrage and Defence or War Risks policy whether purchased or not"
This looks like a perfect way NOT to pay a claim. As ever it is caveat emptor!
Kidnap and Ransom insurance should be part of a layered defence for owners, but protection of the vessel and its crew should always come first - companies like Maritime and Underwater Security Consultants (
http://www.mandusc.com/services/ship-security.htm) have been around for many years and are always a safe bet.
This release is in response to the article on Reuters regarding Piracy premiums:
http://uk.reuters.com/article/idUKLNE63001I20100401
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